AM Best Downgrades and Withdraws Credit Ratings of Members of Columbian Financial Group

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to C (Weak) from C+ (Marginal) and the Long-Term Issuer Credit Ratings to “ccc” (Weak) from “b-” (Marginal) of Columbian Mutual Life Insurance Company (Binghamton, NY) and Columbian Life Insurance Company (Chicago, IL), collectively referred to as Columbian Financial Group (CFG). Concurrently, AM Best has removed from under review with negative implications. The outlook assigned to these Credit Ratings (ratings) is negative. At the same time, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect CFG’s balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management.

The rating downgrades reflect continued declines in the group’s available capital and risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), through to the end of the first quarter of 2024. Furthermore, CFG’s management recently announced that the merger agreement with Constellation Insurance Holdings Inc, which was announced initially in June 2021, was terminated as the strategic transaction will no longer occur. Negative operating trends and failure to execute on capital plans continue to add negative pressure on the company’s overall balance sheet metrics. CFG currently holds a modest and decreasing level of overall absolute capital, which has not improved due to limited financial flexibility.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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